Today is October 6, 2025, and welcome to Furniture Industry News.

We've got a lot to cover today.

New tariffs shaking up imports, pressure on retailers, some hopeful e commerce trends heading into the holidays, and a big tax change that could put money back in your pocket.

Let's dive in.

The biggest headline this month is tariffs.

On September 29, the White House announced a new set of Section 232 tariffs targeting timber, lumber, upholstered wood furniture, kitchen cabinets and vanities.

These go into effect on October 14th and are already sending ripples through the entire furniture supply chain.

The changes include a 10% tariff on softwood timber and lumber, and a 25% tariff on finished wood furniture, including upholstered pieces, as well as kitchen cabinets and vanities.

Those rates will rise again on January 1, 30% for furniture and 50% for cabinetry and vanities.

Some countries, like the U.K. the EU and Japan, will see capped rates under existing trade agreements, generally limited to around 10 to 15%.

These actions come from the completed Section 232 investigation into the national security impact of imported wood products.

The uncertainty is over.

The tariffs are official and here to stay.

At least for now.

Importers aren't sitting still.

They're adapting fast by diversifying, sourcing and moving production away from the countries hit hardest by the tariffs, while streamlining logistics and materials to absorb more of the cost without raising prices too quickly.

For months, retailers have been quietly eating those costs to stay competitive, which is why online prices for chairs, tables and mattresses haven't jumped dramatically yet.

But executives are warning that cushion is running out.

Prices are beginning to move, and with more than 90 countries now subject to some type of levy or trade restriction, importing furniture has become a whole new game.

Companies are spending more time rerouting shipments, managing paperwork and recalculating margins.

It's tedious, it's costly, and it's slowing things down.

We're also seeing real financial strain on the retail side.

Several regional mattress and furniture chains have filed for bankruptcy this year, some restructuring under chapter 11, others liquidating under chapter 7.

These stories often don't make national headlines, but they're telling Rising costs, thinner margins and slower traffic are taking a toll.

Suppliers and manufacturers tied to these retailers are feeling the ripple effects through unpaid invoices and canceled orders.

It's another reminder of how tightly connected our industry really is.

When one link breaks, everyone feels the pull.

Now let's look at some good the 2025 holiday outlook.

According to Adobe's digital economy index, US online retail sales are expected to grow about 6% year over year.

This holiday season, consumers are shopping earlier, chasing discounts and doing more of it on their phones.

While Adobe doesn't break out furniture specifically, the message is digital retail is where the momentum is.

So if your website isn't fast, clean and mobile friendly, you're leaving money on the table.

Shoppers now browse, compare and even complete entire furniture purchases.

Online retailers that invest in personalized recommendations or augmented reality previews and clear delivery timelines are seeing the biggest returns.

In short, user experience has become the new sales floor, and this holiday season that experience might matter more than any promotion you run now let's talk taxes, because there's a major change that affects a lot of business owners and property holders.

Under the One Big Beautiful Bill act, the state and local tax deduction, better known as the SALT deduction, is is increasing from $10,000 to $40,000 starting with the 2025 tax year.

The higher cap runs through 2029, then reverts in 2030.

Unless Congress renews it.

It phases out once Your income passes 500,000 in modified adjusted gross income and drops back to 10,000 above 600,000.

And if you own a business structured as a pass through entity, you can still use PTET elections to deduct state and local taxes at the entity level, which can lower your taxable income even more.

For multi store owners or executives with commercial real estate, that could mean real savings and a great reason to talk with your accountant about restructuring or timing your deductions for 2025.

So what should you be doing today to stay ahead of all this?

Start by reviewing your sourcing and logistics, because flexibility is your best defense against shifting tariffs.

Diversify now before January's rate increases.

Run margin stress tests so you know when you can absorb costs and when you'll need to adjust prices.

Keep an eye on your partners, especially if a retailer or vendor shows financial trouble.

Optimize your online shopping experience by checking your site's speed, checkout flow and mobile usability.

If it's not seamless, fix it now and revisit your tax strategy.

Between the new SALT cap and PTET deductions, there may be smart ways to reduce your overall liability.

Talk with your advisor now before year end planning season hits.

All in all, this is a season of both pressure and possibility.

Tariffs are testing our flexibility, retailers are tightening their belts, and digital sales are rewriting the rulebook.

But for those who stay nimble, informed and customer focused, there's plenty of opportunity ahead.

That's it for today's episode of Furniture Industry News.

If you found this update helpful, subscribe so you never miss future insights on the trends shaping our industry.

Thanks for listening.

And until next time, stay sharp, stay resilient, and keep building.

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